European Commission okays state aid for Peugeot
AMSTERDAM (AP) — The European Union Commission’s competition regulator has approved a plan by the French government to give 572 million euros ($759 million) in aid and support to troubled automaker PSA Peugeot Citroen.
In a decision published Tuesday, commissioner Joaquin Almunia said he believes the plan will help Peugeot return to profitability while keeping damage to competitors who aren’t receiving government money “to a minimum.”
The aid is mostly in the form of state guarantees on 7 billion euros worth of loans issued by the group’s finance arm. The commission said Peugeot will be forced to sell assets to help fund its restructuring program, but didn’t specify which assets.
Peugeot posted a net loss of slightly more than 5 billion euros in 2012.
In a separate statement, Peugeot welcomed the decision.